New Home Sales Rise 5.7 Percent in August

10/04/2015

Sales of new single-family houses in August 2015 were at a seasonally adjusted annual rate of 552,000, according to estimates released late last month by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 5.7 percent above the revised July rate of 522,000 and is 21.6 percent above the August 2014 estimate of 454,000.

The median sales price of new houses sold in August 2015 was $292,700; the average sales price was $353,400. The seasonally adjusted estimate of new houses for sale at the end of August was 216,000. This represents a supply of 4.7 months at the current sales rate.

"We continue to hear from our members that more serious home buyers are returning to the market," said Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo. "Builders are gradually adding inventory to meet future demand as they handle shortages of lots and labor."

"Today's report indicates the release of pent-up housing demand as the overall economy strengthens, consumer confidence grows and mortgage interest rates remain low," said NAHB Chief Economist David Crowe. "The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015."

Regionally, the Northeast, South and West posted respective gains of 24.1 percent, 7.4 percent and 5.4 percent. The Midwest registered a 9.1 percent decline.

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